Appendix A

Why the Yuan Affects You

A Primer on How International Economics Shapes Investment Valuations

This book has been written to help average Baby Boomers planning for retirement to anticipate negative trends to protect their savings. It assumes little background knowledge in economics, finance, or investments. However, some readers may need an introduction to these topics. This appendix, and the one following, are for you. More experienced readers may find them a useful refresher.

What Drives the Dollar’s Value?

The value (purchasing power) of a unit of currency is driven by the magnitudes of its supply and its demand.

Demand for the dollar is driven by transactions and investments. Consumers use the dollars they receive in payment (e.g., ...

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